Bayut: Average annual Dubai rents rise to $37,500
Bayut's report found rental values to be 3% higher than the average apartment rent of $36,500 at the end of December 2015
The average annual apartment rent in Dubai across all bedroom categories rose to $37,572 (AED138,000) in January, according to a new report by Bayut.com.
The real estate website's report found rental values to be 3% higher than the average apartment rent of $36,500 (AED134,000) at the end of December 2015.
Localities offering affordable rental options in the UAE property market are fast gaining popularity among tenants.
"The shift is only natural when a large number of middle- and low-income individuals and households are making their way to the city owing to unabated development that keeps churning out jobs," the report said.
"The city has a vast population of labour from South and Far East Asian countries that fall in the middle-tier income groups, thus spurring demand for affordable housing units."
In January, Bayut.com noted Dubai apartment rents declining in certain bed groups while increasing in others.
As the prices in Dubai's real estate market have been experiencing soft adjustments over the last year and rents remaining robust, the return or yields for invetors in the apartment category have bcome highly attractive.
On average, apartment yields across the Emirate were estimated at a little over 6% - although the yields go up to 10% depending on location and quality of projects.
In its month-on-month study, Bayut found that average annual rents for studio apartments were around $16,000 (AED59,000) - a negligible 1% decrease compared to December 2015.
One-bedroom apartments were being rented for an average of $26,000 (AED97,000) in January, registering a 0.8% decrease, while two-bed and three-bed apartments posted 0.1% and 2.2% increases with average annual rents of $41,000 (AED151,000) and $57,000 (AED211,000) respectively.
The four+ bedroom category saw a rental decline of 2.2% in January, down to an average of $90,000 (AED330,000) from $92,000 (AED337,000) in December 2015.
According to Bayut's research trends, Dubai Marina remained the most popular locality for renting apartments in Dubai - followed by Jumeirah Lakes Towers.
Bur Dubai, Downtown Dubai and Business Bay rounded off the list of top five localities for renting apartments in January.